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Coronavirus: Lufthansa concurs EUR9bn rescue deal with Germany

Coronavirus: Lufthansa concurs EUR9bn rescue deal with Germany
Image copyright DeFodi Images / Getty Images Lufthansa has agreed a rescue deal worth €9bn (£8bn) with the German government that saves it from collapse.The German airline has been severely affected by a decline in travel due to the coronavirus and closed its budget airline Germanwings in April.The German government will take a 20% stake…

Lufthansa aircraft parked at Frankfurt Airport

Image copyright
DeFodi Images/ Getty Images

The German government will take a 20%stake in the company, which it means to sell by the end of 2023.

As part of the rescue plan, the German federal government will likewise inject EUR5.7 bn in non-voting capital, which is understood as a “silent participation”.

The bailout deal is the result of weeks of talks between Lufthansa and the German government about monetary help and will assist save up to 10,000 tasks.

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AFP/ Getty Images

Image caption

The French and Dutch federal governments stepped in to save Air France the other day with an EUR11 bn offer.

Lufthansa decommissioned more than 40 aircrafts in April and stated it would look to unload airplanes in its other organisations, which consist of Austrian Airline companies, Swiss and Eurowings.

Lufthansa is not the only national provider that has actually needed to be rescued.

The UK government has indicated that it is preparing its own strategy to save big British firms

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